Oil has spilled over, literally and...........>

FOREX: Oil has spilled over, literally and figuratively, with the Saturday drone

attack on Saudi Aramco facilities affecting an ~5% of global crude output. Mkt

impact has been slightly moderated as U.S. Pres Trump authorised the release of

U.S. petroleum reserves if needed to secure ample supply. Still, a combination

of risk aversion & firmer oil prices has determined price action in early trade.

- Crude skyrocketed bolstering oil-tied FX, which remain bid even as oil came

off highs. NOK & CAD top the G10 pile; RUB is the strongest EM currency.

- JPY has garnered strength on safe haven demand, which offset the impact of

firmer crude; CHF is also stronger. The Antipodeans are the major G10 laggards,

alongside GBP. Sterling has struggled on the risk-off mood & (possibly) PM

Johnson's preparedness to defy parliamentary ban on pursuing a no-deal Brexit.

- USD/KRW opened sharply lower, playing catch-up to USD/yuan moves pre-weekend,

when S. Korean markets were shut for a 2-day holiday. TRY slumped on Saudi news.

- China's activity data is on the radar, with the Asia-Pac docket otherwise thin

amid a market holiday in Japan. Final Italian CPI for Aug, U.S. Empire m'fing,

Norwegian trade balance & a speech from ECB's Lane take focus thereafter.